ECON 210 Chapter 27 Review

What is a result of a high level of government corruption? A.) There are few entrepreneurs. B.) The form of government tends toward Communism. C.) Politicians hold little power over the market. D.) Government officials have a low standard of living.

A

A country increases its technological knowledge by engaging in... A.) programs that improve workers' health. B.) investment in physical capital. C.) research and development. D.) education.

C

For most of recorded human history, long-run economic growth was... A.) the same as it is today. B.) much higher than it has been in recent decades. C.) almost nonexistent. D.) the highest during the Dark Ages.

C

When industries are limited by the size of the domestic market, opening trade to the world markets will likely lead to _____ and _____ real GDP per capita in the domestic country. A.) economies of scale; increase B.) diseconomies of scale; decrease C.) diseconomies of scale; increase D.) economies of scale; decrease

A

If real GDP per capita in a country was $14,000 in year 1 and $14,140 in year 2, then the economic growth rate for this country from year 1 to year 2 was... A.) 2% B.) 1% C.) 4% D.) 3%

B

One measure of student output is number of completed math problems produced. Using pen and paper only, a student can complete 50 math problems in 2 hours. Using pen, paper, and a calculator, the same student can complete 100 math problems in 2 hours. (The student is already familiar with, and knows how to use, the calculator.) This scenario illustrates the use of which factor of production? A.) human capital B.) physical capital C.) both human capital and technological knowledge D.) technological knowledge

B

Over the past 200 years, economic growth in the United States has been... A.) among the slowest in the world. B.) slow and consistent. C.) the fastest in the world. D.) volatile.

B

The United States and Western European countries began to experience accelerated economic growth during which century? A.) twelfth B.) nineteenth C.) seventeenth D.) sixteenth

B

When economists speak of "long-run economic growth," they mean increasing the... A.) real GDP of a country. B.) per capita real GDP of a country. C.) geographic size of a country. D.) population of a country.

B

Which is NOT an institution that leads to sustained long-term economic growth? A.) a more equal income distribution B.) a stable political system C.) an honest government D.) a dependable legal system

B

Factors of production that contribute to growth in per capita GDP include... A.) organization of resources. B.) proximal and ultimate factors of production. C.) physical capital, skilled labor, and technological know-how. D.) institutions

C

One of the best explanations for why some countries are rich and others are poor is that... A.) technological knowledge is more advanced in rich countries than in poor countries. B.) rich countries have far greater natural resources than poor countries. C.) rich countries organize their factors of production more efficiently than poor countries. D.) rich countries may have simply gotten lucky and poor countries remain unlucky.

C

Which of the following has the greatest potential for solving free-rider problems? A.) an honest government B.) the rule of law C.) property rights D.) a stable political system

C

A business that pays for its workers to attend a technical college is increasing its... A.) organizational skills. B.) physical capital. C.) technical knowledge. D.) human capital.

D

If U.S. per capita GDP is $50,000 and grows at 2% per year, what will U.S. per capita GDP be in 70 years? A.) $800,000 B.) $400,000 C.) $100,000 D.) $200,000

D

The main reason for the influence of institutions on the wealth of nations is that good institutions... A.) help distribute wealth more evenly among the people. B.) keep the economy in tight control of the government. C.) allow government to more easily convert private property into collective property. D.) raise people's incentives to build wealth.

D

Wealthier nations tend to have... A.) fewer opportunities for leisure and entertainment. B.) lower infant survival rates. C.) lower life expectancy rates. D.) better educational opportunities.

D

Which of the following defines the "rules of the game" that structure economic incentives? A.) technical knowledge B.) economic laws C.) factors of production D.) institutions

D

Which statement best describes the cross-country evidence on the relationship between a nation's GDP per capita and standard measures of societal well-being? A.) There is no relationship between GDP per capita and measures of societal well-being. B.) GDP per capita is negatively related to measures of societal well-being. C.) The relationship between GDP per capita and societal well-being is positive at times and negative at times. D.) GDP per capita is positively related to measures of societal well-being.

D

Which would be most effective in ensuring sustained long-term economic growth? A.) increasing human capital B.) increasing government control of land use C.) increasing physical capital D.) increasing technological knowledge

D